Preparations for the sale of the pharmaceutical group Seqens by Eurazeo would be initiated by the French investment company. The latter wishes to sell the pharmaceutical company to take advantage of the high valuation of companies operating in the healthcare sector.
The French investment company Eurazeo plans to divest itself of the pharmaceutical group Seqens, which it owns. Eurazeo's intention to divest Seqens has been revealed by sources close to the case. Indeed, the objective pursued by the investment firm through this sale is to take advantage of the high valuation of companies in the healthcare sector.
The pharmaceutical group Seqens could report a valuation estimated at more than €2 billion. This amount corresponds to more than 15 times the company's expected profits. Moreover, Seqens was formerly called Novacap until 2018. Eurazeo had acquired a 67% stake in Novacap in 2016 from the Ardian fund.
At the time, this stake was acquired as part of a transaction that estimated the value of the pharmaceutical group at 654 million euros, including its debt. For its part, Ardian has maintained an 18% stake in Seqens. The remainder of the capital is held by Mérieux Equity Partners and the company's management.
In connection with the sale of Seqens, the French investment company Eurazeo is looking for a buyer. It has therefore chosen the American group JP Morgan to help it find a buyer. Indeed, the company is recognized as a leader in investment banking.
In particular, it offers financial services for companies and individuals. JP Morgan is also active in asset management and financial transactions. In addition, the acquisition of Seqens could be seen by several pharmaceutical groups as an opportunity to strengthen their capital.
Moreover, many have already been mentioned as potential acquirers. These include Samsung Biologics, Lonza, Cambrex and Recipharm. Private equity funds may also find the acquisition of the pharmaceutical group attractive.
Seqens is a company specialized in the manufacture of active ingredients and specialty chemicals. It is recognized as an integrated global player in pharmaceutical synthesis and specialty ingredients. Thus, the pharmaceutical group designs and supplies, in particular, aspirin, paracetamol and cosmetic products to pharmacies.
The company conducts its activities in 24 production sites and 3 R&D centres. These are mainly located in Europe, Asia and North America. The pharmaceutical group has more than 300 scientists, engineers and experts. In addition, Seqens made forecasts for the exercise of its activity in 2021.
This year, the company is expected to achieve a profit before interest, taxes, depreciation and amortization (Ebitda) estimated at nearly 150 million euros. 150 million. This should enable the company to achieve a turnover of one billion euros.